I'm in a bit of a problem.. and it's a bit of a time sensitive issue. Anyways, I have a '02 WJ with the 4.7L HO.

I recently drove out of town to work (700 miles) and had no issues. Running a few errands I get my check engine light to come back on and it throws P1698 and P0700 codes. Not long after I get a Trans Over Temp light to come on and so I pull over. When I had to put it in reverse, it shifted hard and felt like it got stuck in second gear when i put it back into drive. Turning vehicle off and back on would fix this immediately (although temporarily).

Trying to troubleshoot on the side of the road I pull the dipstick from my transmission and notice no strange or burnt smells and the fluid is clear and red. Dealership told me that my transmission cooler was not connected properly and the fluid was burnt and chunky black -- I couldn't have driven more than 25 miles from where I was until I got to the dealership. They're trying to charge me $6k for a new tranny, and I need to leave for home asap due to family obligations.

I'm calling BS. Any advice on what to check or how to tell if I really need a tranny? I'm also in North Dakota so options are limited.

guess they figure you got a pocket full of that bakken money. try disconnecting the battery and ground the two terminals against each other while disconnected from the battery to discharge any residual power that may be held in the computer., its free and somewhat easy

Your jeep has the 5-45RFE transmission. The P1698 code means that there is a data connection problem between PCM and TCM. This can be a wiring problem, moisture in one of the connectors (TCM/PCM) or a TCM problem. I would start removing the connectors on TCM and PCM and clean them well with contact cleaner, dry them and reconnect.
The transmission overtemp however seems to be pointing towards an other problem. What the stealer ment with " transmission cooler not connected properly" i have no idea. A loose line would have given a low level and you said that you checked the level and colour already.
The TCM will put the transmission in third gear when it sees a problem that could harm the transmission (limp mode). Once in limp mode, it will stay there until you switch ignition off and on again.
It can be that the stealer found other codes with their DRBIII scanner, but if they tell you that the fluid was burnt and black after 20 miles that would be strange.

Thanks for clearing that up. I have been searching through forums and have found people with almost an identical problem and saying it could have been he governor pressure sensor and/or solenoid. If that sensor also controls transmission temp, could that mean it's just that sensor/solenoid?? And is that an easy fix? Thanks again guys

Governor pressure solenoid is part of the TRS solenoid block inside the transmission on top of the valve body. It controls the line pressure, which is used to activate the clutches. The governor pressure sensor is a separate unit (named line pressure sensor on this transmission), which sits outside of the transmission on the right aft side (close to the exhaust hanger).
You said that when you put it in reverse, it shifted hard. Reverse on this transmission is mechanically controlled with a mechanically operated valve inside the valve body. Line pressure ofcourse is still electronically controlled. A hard shift would indicate high line pressure, or there is something mechanically wrong inside the transmission. Also high idle speed will give a hard shift into reverse. If you would drive for prolonged time with the transmission in limp mode (third gear and no torque converter lockup), transmission temperature will get high as well and could eventually give a trans overtemp light. High fluid temperature however normally comes from lack of cooling, or slipping clutches (low line pressure). It would be interresting to see what the line pressure is. I still wonder however where the P1698 is coming from.

Just checked the wiring manual for the ground for the TCM. It is G102 and it sits on the right side of the engine block just behind the front mount. Check this ground to be free of corrosion and if its tightened well.

Well I appreciate all the help, but I went back to the dealership and they just had my jeep sitting in the back lot without a transmission. The new one hasn't even arrived. If it's not driveable by the time I absolutely need to leave, I will just have to rent a car and deal with this situation later. I'll still make sure to check everything you mentioned when I get that thing back in my possession.

The 545rfe is a good transmission if it is maintained. At this point I would hunt down a low mileage used piece and have them swap it in. Drain the fluid, change filters, and refill with the correct ATF. I would expect that to be accomplished for less than $1500.

The 545rfe is a good transmission if it is maintained. At this point I would hunt down a low mileage used piece and have them swap it in. Drain the fluid, change filters, and refill with the correct ATF. I would expect that to be accomplished for less than $1500.

Eventhough a used transmission is a good option, the P1698 is pointing towards a problem of communication between PCM and TCM.
What did the stealer say about this code? It would be a pitty to get an other transmission swapped in to have it ruined by an external fault.